Purchase and tender procedure

Goverment puchases are done through tendering process.

Fundamental Principle of Public buying
 (A) Procurement of goods in Public Interest for

• Efficiency
• Economy
• Transparency

(B) Fair & Equitable treatment of suppliers        

(C) Promotion of Competition


PUBLIC PROCUREMENT : YARDSTICKS

• Specifications in terms of quality
• Need based procurement (avoid excess)
• Fair, Reasonable & Transparent procedure
• Procurement Vs Requirement
• Reasonableness of Rate
• Each stage of procurement should be recorded

GFR: Rule 145

• Purchase of goods without quotation
• Value upto 15000/-
• Each occasion

Certificate to be recorded by the competent Authority –

   “I,------ am personally satisfied that these goods purchased are of the requisite quality and specification and have been purchased from a reliable supplier at a reasonable price.”


GFR: Rule 146

• Purchase of goods by
• Purchase Committee
• >15000/- and upto 1Lac on each occasion
• Three members Committee as decided by the HoD

Committee’s responsibilities

• Market Survey
• Reasonableness of Rates
• Quality & Specifications
• Identify appropriate supplier
• Joint Certificate by the Committee

Purchase of goods by obtaining bids(Tendering)
Ministry / Departments of Govt. of India have been delegated full powers to make their own arrangements for procurement of goods
Rule 141 of GFR says about Central Purchase Organisation (e.g. DGS&D) RATE CONTRACT


Types of Tender
In broader terms there are three types of tender : -
1. Open Tender

• Tender value >= 25 Lac
• Ad in Indian Trade Journal(ITJ)
• At least one National Daily having wide circulation
• Publish at own website & NIC website
• NIT to Indian Embassies abroad as well as foreign embassies in India
• Three Weeks time from date of publication of bid

2. Limited Tender

• Value up to 25 Lac
• Bid document should be sent to Regd. Suppliers by Speed Post/Regd Post/Courier/ e-mail
• No. of supplier firms in Ltd. Tender should be more than three
• Web based publicity

Please note sufficient time should be given in Ltd. Tender

3. Single Tender

• If only a particular firm is the manufacturer
• Emergent need to procure from a particular source
• Technical reason to be recorded (standardization of machinery – HP, SONY etc. )
• Note that single response to an open bid can’t be termed as Single Tender

Standard Bid Document

• Instruction to Bidder
• Conditions of Contract
• Schedule of Requirement
• Specifications & allied Tech. details
• Price Schedule
• Contract Form
• Other Standard Forms

Earnest Money Deposit

• To safeguard the interest of Deptt (withdrawal / alter the bid by bidder)
• Exemption – Regd. With Central Purchase Organisation / National Small Industries Corporation
• EMD -  2 % to 5% of estimated value
• Can be DD/ FDR/Banker Cheque /BG
• Unsuccessful bidders EMD should be returned /refunded at the earliest.

Process at a glance

1. Estimate (Qty. and Amount)
2. EOI – Expression of Interest
3. RFP/RFQ – Request for Proposal / Quotation
4. PBC – Pre Bid Conference
5. NIT – Notice Inviting Tender
6. APPROVAL
7. WEB PUBLICITY
8. EMD – Earnest Money Deposit
9. BIDDING
10. TOC – Tender Opening Committee (Tech)
11. APPROVAL